HuttCity_TeAwaKairangi_BLACK_AGENDA_COVER

 

 

KOMITI RATONGA RANGATŌPŪ ME TE RAUTAKI| Policy, Finance and Strategy Committee

 

 

25 November 2021

 

 

 

Order Paper for the meeting to be held in the

Council Chambers, 2nd Floor, 30 Laings Road, Lower Hutt,

on:

 

 

 

 

Thursday 2 December 2021 commencing at 2.00pm

 

 

 

Membership

 

Cr S Edwards (Chair)

Mayor C Barry

Cr G Barratt

Cr J Briggs

Cr K Brown (Deputy Chair)

Cr B Dyer

Cr D Hislop

Deputy Mayor T Lewis

Cr C Milne

Cr A Mitchell

Cr S Rasheed

Cr N Shaw

Cr L Sutton

 

 

 

For the dates and times of Council Meetings please visit www.huttcity.govt.nz

 

Have your say

You can speak under public comment to items on the agenda to the Mayor and Councillors at this meeting. Please let us know by noon the working day before the meeting. You can do this by emailing DemocraticServicesTeam@huttcity.govt.nz or calling the Democratic Services Team on 04 570 6666 | 0800 HUTT CITY

 


POLICY, FINANCE & STRATEGY COMMITTEE
Membership:		13
Meeting Cycle:		Meets on an eight weekly basis, as required or at the requisition of the Chair
Quorum:		Half of the members
Membership RMA Hearings:	An independent Commissioner plus a minimum of either 3 or 4 elected members (including the Chair) and alternates who have current certification under the Making Good Decisions Training, Assessment and Certification Programme for RMA Decision-Makers. 
Reports to:		Council

HuttCity_TeAwaKairangi_SCREEN_MEDRES

OVERVIEW:

This Committee assists Council in setting the broad direction of the city, discharging statutory functions, and overseeing organisational performance.

The Committee is aligned with the Transformation & Resources, and Strategy & Engagement, Directorates.

Its areas of focus are:

§   Long term/high level strategic focus

§   Long Term Plan/Annual Plan oversight

§   District Plan oversight

§   Housing/homelessness

§   City growth/economic development

§   Financial and non-financial performance reporting

§   Oversight of Property Working Group

§   Oversight of strategies and policies

§   Bylaw development

§   Oversight of CCOs/approval of SOIs

PURPOSE:

To assist the Council in setting the broad vision and direction of the city in order to promote the social, economic, environmental and cultural wellbeing of the city’s communities in the present and for the future. This involves determining specific outcomes that need to be met to deliver on the vision for the city, and overseeing the development of strategies, policies, bylaws and work programmes to achieve those goals. This committee is also responsible for monitoring the overall financial management and performance of the Council Group.

DELEGATIONS FOR THE COMMITTEES AREAS OF FOCUS:

§  All powers necessary to perform the Committee’s responsibilities including the activities outlined below.

§  Develop required strategies and policies. Recommend draft and final versions to Council for adoption where they have a city-wide or strategic focus.

§  Implement, monitor and review strategies and policies.

§  Oversee the implementation of major projects provided for in the LTP or Annual Plan.

§  Oversee budgetary decisions provided for in the LTP or Annual Plan.

§  Recommend to Council the approval of any financial decisions required outside of the annual budgeting process.

§  Maintain an overview of work programmes carried out by the Council’s Transformation & Resources, and Strategy & Engagement, Directorates.

§  Conduct any consultation processes required on issues before the Committee.

§  Approval and forwarding of submissions.

§  Any other matters delegated to the Committee by Council in accordance with approved policies and bylaws.

§  The committee has the powers to perform the responsibilities of another committee where it is necessary to make a decision prior to the next meeting of that other committee. When exercised, the report/minutes of the meeting require a resolution noting that the committee has performed the responsibilities of another committee and the reason/s.

§  If a policy or project relates primarily to the responsibilities of the Policy, Finance & Strategy Committee, but aspects require additional decisions by the Communities Committee, Infrastructure & Regulatory Committee and/or Climate Change & Sustainability Committee, then the Policy, Finance & Strategy Committee has the powers to make associated decisions on behalf of those other committees. For the avoidance of doubt, this means that matters do not need to be taken to more than one of those committees for decisions.

District Plan Delegations:

§  Undertake a full review of the City of Lower Hutt District Plan, including oversight of the District Plan Review Subcommittee in establishing a District Plan work programme and monitoring its implementation.

§  Consideration of matters related to the preparation and ongoing monitoring of the City of Lower Hutt District Plan.

§  Preparation of required Changes and Variations to the City of Lower Hutt District Plan for Council approval to call for submissions.

§  Make recommendations to Council on private District Plan Change requests for Council to accept, adopt or reject.

§  The Chair of the Policy, Finance & Strategy Committee, in conjunction with the Chief Executive, is authorised to appoint a District Plan Hearings Subcommittee of suitably qualified persons to conduct hearings on behalf of the Committee.

Bylaw Delegations:

§  Develop and agree the Statement of Proposal for new or amended bylaws for consultation.

§  Recommend to Council the approval of draft bylaws prior to consultation.

§  The Chair of the Policy, Finance & Strategy Committee, in conjunction with the Chief Executive, is authorised to appoint a Subcommittee of suitably qualified persons to conduct hearings on draft bylaws on behalf of the Committee.

§  Recommend to Council new or amended bylaws for adoption.

Financial, Project and Performance Reporting Delegations:

§  Recommend to Council the budgetary parameters for preparation of the Council’s Long Term Plans (LTP) and Annual Plans.

§  Monitor progress towards achievement of budgets and objectives for the Council Group as set out in the LTP and Annual Plans, including associated matters around the scope, funding, prioritising and timing of projects.

§  Monitoring and oversight of significant city-wide or strategic projects including operational contracts, agreements, grants and funding, except where these are the responsibility of another standing committee.

§  Monitor progress towards achievement of the Council’s outcomes as set out in its overarching strategies for the city and their associated plans.

§  Oversee the activities of the Property Working Group in its implementation of the Purchase and Sale of Property for Advancing Strategic Projects Policy.

§  Oversee the acquisition and disposal of property in accordance with the LTP.

§  Monitor the integrity of reported performance information at the completion of Council’s Annual Report process.

§  Review and recommend to Council the adoption of the Annual Report.

§  Recommend to Council the approval of annual Statements of Corporate Intent for Council Controlled Organisations and Council Controlled Trading Organisations and granting shareholder approval of major transactions.

§  Monitor progress against the CCO and CCTO Statements of Intent and make recommendations to Council in the exercising of Council powers, as the shareholder, in relation to Council Controlled Organisations/Council Controlled Trading Organisations under sections 65 to 72 of the Local Government Act.

§  Oversee compliance with Council’s Treasury Risk Management Policy.

§  Consider and determine requests for rates remissions.

§  Consider and determine requests for loan guarantees from qualifying community organisations where the applications are within the approved guidelines and policy limits.

NOTE:

The Ministry for the Environment advocates that Councils offer specialist RMA training in areas of law which are difficult to grasp or where mistakes are commonly made. This is to complement the Good Decision Making RMA training that they run (which is an overview and basic summary of decision making, rather than an in-depth training in specific areas of the RMA). Therefore in order to facilitate this, the RMA training run for councillors that wish to be hearings commissioners is mandatory.

Reasons for the importance of the training:

1.   Hearings commissioners are kept abreast of developments in the legislation.

2.   Legal and technical errors that have been made previously are avoided (many of which have resulted in Environment Court action which is costly, time consuming and often creates unrealistic expectations for the community).

3.   The reputation of Council as good and fair decision makers or judges (rather than legislators) is upheld.


6                                                                                   02 December 2021

HUTT CITY COUNCIL

 

Komiti Ratonga Rangatōpū me te Rautaki

Policy, Finance and Strategy Committee

Meeting to be held in the Council Chambers, 2nd Floor, 30 Laings Road, Lower Hutt on

 Thursday 2 December 2021 commencing at 2.00pm

 

ORDER PAPER

 

Public Business

 

1.       APOLOGIES

2.       PUBLIC COMMENT

Generally up to 30 minutes is set aside for public comment (three minutes per speaker on items appearing on the agenda). Speakers may be asked questions on the matters they raise.

3.       CONFLICT OF INTEREST DECLARATIONS

Members are reminded of the need to be vigilant to stand aside from decision making when a conflict arises between their role as a member and any private or other external interest they might have     

4.       Recommendations to TE KAUMIHERA O TE AWA KAIRANGI | HUTT CITY Council – 16 december 2021

a)      Hutt City Council Group Annual Report 2020/21 (21/1748)

Report No. PFSC2021/5/260 by the Principal Advisor, Strategic and Business Planning       8

Chair’s Recommendation:

That the recommendations contained in the report be endorsed

 

b)      Minutes of the Dangerous, Affected and Insanitary Building Policy Hearing Subcommittee - 9 November 2021 (21/2011)                                                                             14

       Recommendations from the Dangerous, Affected and Insanitary Building Policy Hearing Subcommittee                                                                                                17

Chair’s Recommendation:

“That the recommendations contained in the minutes be endorsed

 


 

 

c)    Minutes of the Class 4 Gaming Venue and Board Venue Policy Hearings Subcommittee - 18 November 2021 (21/2009)                                                                             25

Recommendations from the Class 4 Gaming Venue and Board Venue Policy Hearings Subcommittee - 18 November 2021 (21/2009)                                              30

Chair’s Recommendation:

That the recommendations contained in the minutes be endorsed.

 

d)    Class 4 Gambling Venue and Board Venue Policy 2021-2024 (21/2041)

Report by the Head of Strategy and Planning                                              32

Chair’s Recommendation:

That the matter be discussed.

 

5.       Council performance overview for the quarter ended 30 September 2021 (21/1810)

Report No. PFSC2021/5/283 by the Chief People Officer                                     41

Chair’s Recommendation:

That the recommendations contained in the report be endorsed.

6.       QUESTIONS

With reference to section 32 of Standing Orders, before putting a question a member shall endeavour to obtain the information. Questions shall be concise and in writing and handed to the Chair prior to the commencement of the meeting.

 

 

 

 

 

 

Judy Randall

Democracy Advisor

 

 


                                                                                       8                                                  02 December 2021

Policy, Finance and Strategy Committee

27 October 2021

 

 

File: (21/1748)

 

 

Report no: PFSC2021/5/260

 

Hutt City Council Group Annual Report 2020/21

 

Purpose of Report

1.    The purpose of this report is to progress the review and approval of Council’s Group Annual Report and Summary Annual Report for the year ended 30 June 2021 towards adoption.

2.    Specifically, the Policy, Finance and Strategy Committee (the Committee) is asked to review and provide feedback on the draft Group Annual Report 2020/21.  Committee endorsement of the content and recommendation of adoption to Council is sought.

Recommendations

That the Committee:

(1)     endorses and recommends to Council the adoption of the Group Annual Report for the year ended 30 June 2021 (view the Group Annual Report here - https://hutt.city/draftannualreport), subject to satisfactory resolution of the following outstanding items:

(a)     completion of final design and minor editorial changes;

(b)     completion of any external audit adjustments; and

(c)     receipt of final audit clearance from Audit NZ; and

(2)     notes that the Annual Report and Summary will be available within one month of adoption by Council, including:

(a)     publication on Council’s website;

(b)     hard copies available in the city’s libraries, community hubs and at Council’s main administration building; and

(c)     accompanied by public notices and social media collateral.

For the reason of meeting legislative requirements and to inform and engage with the community.

 

 

Background

Legislative framework

3.    The Local Government Act 2002 requires local authorities to prepare, complete and adopt (by resolution) an Annual Report within four months of the end of the financial year to which it relates.  The Annual Report, and a summary of the information it contains, must be made publicly available within one month of its adoption.  The statutory deadline for adoption of the Annual Report has been extended this year to 31 December 2021 due to audit resourcing constraints.

4.    There is a requirement to prepare both a Full Annual Report (FAR) and a Summary Annual Report (SAR).  Both these documents are required to have parts audited.  The auditor’s opinion will state exactly which pages of the FAR and SAR have been audited.  The SAR includes the front section of the FAR, which includes the summary sections of non-financial and financial performance results.

5.    The final FAR must contain the Auditor-General’s (audit) report and the SAR must contain the Auditor-General’s report on whether the summary represents, fairly and consistently, information regarding the major matters dealt with in the Annual Report.

6.    Information to be included in the FAR includes:

Groups of activities;  Capital expenditure for groups of activities;  Statement of service provision;  Funding impact statement for groups of activities;  Internal borrowing; Council-controlled organisations;  Financial statements;  Funding impact statement;  Rating base information;  Reserve funds;  Key person remuneration (includes elected members);  Employee staffing levels and remuneration; · Severance payments;   Statement of compliance; and activities undertaken to establish and maintain processes to provide opportunities for Māori to contribute to the decision-making processes of the local authority.

(Note that some of these aspects may not be relevant and therefore will not be reported on).

Discussion

Outline of high-level process

7.    The role of the Committee is to monitor the integrity of reported performance information at the completion of Council's Annual Report process. The Committee reviews and recommends to Council the adoption of the Annual Report.  Council’s role is the adoption of the final Annual Report, both the FAR and SAR, and the meeting to adopt the Annual Report is scheduled for 16 December 2021.

8.    Prior to the Committee’s review, the Audit and Risk Subcommittee (ARSC) has a role to review and monitor the integrity of the Annual Report, including statutory financial statements and any other formal announcements relating to Council’s financial performance.  This focusses particularly on: compliance with accounting and legal requirements, consistency of application of accounting policies and changes to these, disclosures and significant adjustments resulting from the audit.

9.    The ARSC considered the draft Annual Report at its 11 November 2021 meeting, where the content was endorsed and recommended to this Committee, subject to the satisfactory resolution of the same outstanding items as in the accompanying recommendations to this report.

10.  Endorsement and recommendation of draft Annual Report content is now being sought from this Committee to Council.  Ahead of these processes, the interim unaudited performance results were presented to the Committee on 14 September 2021 (refer PFSC 2021/4/201).

11.  Following the ARSC, the following key changes have been made to the Annual Report:

-     Finalisation of the group tax position audit and related disclosure in the financial statements

-     Inclusion of additional disclosure in the financial statements related to the recent Government decisions for Three Waters Reform. 

Risk and mitigations

Risk of error, omission and non-compliance in preparation

12.  There is a risk that errors or non-compliance with legislation and accounting standards could occur in the preparation of the Annual Report.  To mitigate this risk, quality assurance reviews were performed on the results and commentary.  The reviews focused on accuracy, completeness and reasonableness of disclosures and legislative compliance.

13.  External specialist advice has been sought where deemed necessary.  This included advice sought in relation to the wind-up of the Hutt City Community Facilities Trust and the Holidays Act Compliance and Remediation Liability provision.

Reviews of accuracy, completeness and fairness

14.  Several reviews of the Annual Report take place by officers with differing levels and areas of involvement in reporting.  The following table summarises the level of review over the draft Annual Report.


 

 

Reviewer

Statement of Service Performance

Financial Statements

Corporate Leadership Team

 

 

Director Strategy & Engagement (Project Sponsor)

ü

ü

Group Chief Financial Officer

ü

ü

Head of Chief Executive's Office

ü

ü

Head of Communications & Engagement

ü

ü

Head of Strategy & Planning (Project Owner)

ü

ü

Manager Financial Strategy & Planning

ü

ü

Financial Accounting Manager

ü

ü

Principal Advisor Research and Evaluation

ü

 

 

15.  All the technical quality assurance reviewers who perform reviews from a financial perspective are Chartered Accountant qualified or equivalent and have the appropriate technical accounting skills and knowledge.

Delay in Audit New Zealand’s final clearance

16.  The timing of the external audit of the Annual Report has been confirmed by Audit New Zealand to take place from 25 October to 22 November 2021. This is a very tight timeline ahead of the publication of agenda papers for the Council meeting on 16 December 2021.

17.  There is a risk of delay in Audit New Zealand’s final clearance due to resourcing constraints or unresolved technical matters.  Council’s Finance business unit will work with Audit New Zealand to address any risk areas as a top priority as the audit progresses.

Options

18.  There are no options to consider.

Publicity considerations

Communication plans for the Annual Report

19.  We intend to deliver relevant and concise messages to the community via a variety of appropriate channels.  These messages will highlight Council’s achievements in 2020/21, reflecting our focus for the year and reinforcing our plans for the future.

20.  The plan to achieve this will be developed further in the next few weeks once the draft content has been reviewed and the design process is further underway.  The plan is expected to cover:

·    Key messages (as reflected in the draft content)

·    Public notices (via press releases, council website and social media) advising the availability of the Annual Report and Summary

·    Hard copies of the report available in Council libraries, community hubs and our main administration building

·    Provision of both documents to the Secretary, the Auditor General and the Parliamentary Library within one month of adoption (as required by the Local Government Act 2002)

·    Sharing of key Council highlights via social media (including relevant photos, video and infographics)

·    Updates to Council’s website.

Accessibility

21.  We note the initial brief provided to designers included a requirement to ensure print and online versions of the report meet New Zealand accessibility standards, through adherence to the Accessibility Charter and Accessibility Guide.

22.  Design review will include considering the accessibility of specific sections, external sources and email addresses in the digital versions of the FAR and SAR.

Climate Change Impact and Considerations

23.  The Annual Report provides an opportunity to highlight 2020/21 climate change responses.

Legal Considerations

24.  The Local Government Act 2020 sets out the information and timing requirements for the Annual Report.  The 2020/21 Annual Report and Summary must be completed and adopted by 31 December 2021, and then made publicly available within one month.

Financial Considerations

25.  The financial results are in line with those presented to the Committee on 14 September 2021, with one exception being accounting for the wind-up of the Hutt City Community Facilities Trust (CFT).  This change was recommended by PricewaterhouseCoopers in its advice to Council which reflected the amalgamation of assets directly into the ‘Statement of changes in equity’ rather than appearing in ‘Comprehensive revenue and expenses.’  Due to the complexity of this transaction and the high value ($37M) we sought external specialist advice to mitigate risks.

26.  The final audited group results will be presented to the Council meeting on 16 December 2021, together with commentary about any changes that have been made.

Appendices

https://hutt.city/draftannualreport 

 

 

 

 

 

Author: Marty De Boer

Principal Advisor, Strategic and Business Planning

 

 

 

Author: Darrin Newth

Financial Accounting Manager

 

 

Reviewed By: Jenny Livschitz

Group Chief Financial Officer

 

 

 

Reviewed By: Wendy Moore

Head of Strategy and Planning

 

 

 

Approved By: Matt Boggs

Director, Strategy and Engagement

 


                                                                                       1                                                  02 December 2021

Policy, Finance and Strategy Committee

17 November 2021

 

 

 

File: (21/2011)

 

 

 

 

Report no: PFSC2021/5/152

 

Minutes of the Dangerous, Affected and Insanitary Building Policy Hearing Subcommittee - 9 November 2021

 

 

 

 

 

 

 

Appendices

No.

Title

Page

1

Minutes of the Dangerous, Affected and Insanitary Building Policy Hearing Subcommittee - 9 November 2021

15

    

 

 

 

 

 

 

 

Author: Kate Glanville

Senior Democracy Advisor

 

 

  


Attachment 1

Minutes of the Dangerous, Affected and Insanitary Building Policy Hearing Subcommittee - 9 November 2021

 











                                                                                       1                                                  02 December 2021

Policy, Finance and Strategy Committee

17 November 2021

 

 

 

File: (21/2009)

 

 

 

 

Report no: PFSC2021/5/151

 

Minutes of the Class 4 Gaming Venue and Board Venue Policy Hearings Subcommittee - 18 November 2021

 

 

 

 

 

 

 

Appendices

No.

Title

Page

1

Minutes of the Class 4 Gaming Venue and Board Venue Policy Hearings Subcommittee - 18 November 2021

26

    

 

 

 

 

 

 

 

Author: Kate Glanville

Senior Democracy Advisor

 

 

  


Attachment 1

Minutes of the Class 4 Gaming Venue and Board Venue Policy Hearings Subcommittee - 18 November 2021

 







                                                                                       1                                                  02 December 2021

Policy, Finance and Strategy Committee

22 November 2021

 

 

 

File: (21/2041)

 

 

 

 

 

 

Class 4 Gambling Venue and Board Venue Policy 2021-2024

 

Purpose of Report

1.    The purpose of the report is to provide the committee:

a.    with the proposed Class 4 Gambling Venue and TAB Venue Policy (the policy) for consideration following the hearing of submissions and deliberations of the Class 4 Gambling Venue and Board Venue Policy Hearings Subcommittee (the subcommittee) on 18 November 2021; and

b.    with responses to additional requests of officers from the subcommittee.

Recommendation

That the Committee recommends that Council adopts the proposed Gaming Venue and Board Venue Policy attached as Appendix 1 to the report.

 

Background

2.    At its hui on 14 September 2021, the Policy Finance and Strategy Committee agreed to undertake consultation on three options for Council’s Gambling Venue and Board Venue Policy and endorsed the Summary of Proposal and Statement of Proposal which are required to undertake a Special Consultative Procedure.

3.    A subcommittee comprising the Mayor, Deputy Mayor, Chairs of Standing Committees and Councillors Mitchell and Shaw was appointed to hear submissions on the options for the Class 4 Gambling Venue and Board Venue Policy and make recommendations to the Policy, Finance and Strategy Committee.

4.    The consultation began on Tuesday 5 October 2021 and closed at 5.00pm on Wednesday 10 November 2021.

Discussion

5.    The review of the Class 4 Gambling Venue and Board Venue Policy 2015 is required by the Gambling Act 2003 (the Act) and was undertaken using Council’s vision as a guiding principle. The review included a social impact assessment (SIA) and a report by the New Zealand Institute of Economic Research (NZIER) on the impact of Class 4 gambling in the city.

6.    Under the Act, Council’s powers are limited to regulating and administering Class 4 gambling.  The Act requires Council to set a Class 4 gambling venue policy to influence the extent of, and minimise the impacts of, Class 4 gambling in the city. It enables Council to control where venues can be established and limit the permitted number of gambling machines at each venue. 

Class 4 Gambling Venue and Board Venue Policy Hearings Subcommittee

 

7.    The subcommittee is recommending to the committee that Council:

a.       adopts a Wellbeing approach - sinking lid (Option 1) - to amend the Class 4 Gambling Venue and Board Venue Policy; and

b.       agrees that there will be no new machines or venues in Council owned buildings.

Other requests

8.    The subcommittee has also made the following requests of officers;

a.       gather and report data annually on the number of electronic gambling machines, the number of venues and gambling machine profits for the city and grants details;

b.       investigate a fee that covers the cost of licensing enforcement and data gathering;

c.       investigate long-term accommodation options that fit with the values in Council’s Class 4 Gambling Venue and Board Venue Policy

d.      work with Local Government New Zealand around a government review of the Gambling Act 2003 and online gambling.

Data gathering

9.    Quarterly data on the number of electronic gambling machines, venues and gambling machine profits for the city is currently collected and can be reported annually.  The Department of Internal Affairs (DIA) Information collects the grants details.  Gambling trusts are not required to publish these details, but some do through their annual reporting process eg Lion Foundation, Pelorus Trust. 

10.  Very recently, DIA has advised the sector about its proposals to government to change existing operational policy settings regarding the availability of gambling machine profits (GMP) information.  The proposed change will allow select permitted users that need detailed data to carry out their work access to GMP data at an individual venue level.  This is different to DIA’s current approach where data at an individual level is published at territorial district level and not made available to organisations such as Councils and wellbeing services.

11.  Having access to this data will substantially improve Council’s ability to monitor individual venues and support governance decision making on gambling policy.

Licensing enforcement

12.  The Environmental Health team have advised that DIA is responsible for enforcement for all venues and that operational budget is not currently allocated to this activity.  As no new venues or machines will be allowed under Council’s revised Class 4 Gambling Venue and Board Venue Policy there will be no future applications or associated fees to administer.

13.  They also advised that Environmental Health officers do consider how the gambling machines are being operated in those venues that have them as part of their liquor licensing role (gambling cannot be the sole function of a venue).

Long-term accommodation options

14.  Officers will investigate long term accommodation options for venues in Council facilities to ensure these align with the values in Council’s Class 4 Gambling Venue and Board Venue Policy 2021.  Officers will report back to the relevant committee in November 2022.

Review of the Gambling Act 2003 and online gambling

15.  Officers suggest a draft remit is prepared for the Local Government New Zealand Annual General Meeting (July 2022) and a submission prepared for Select Committee should government propose future legislative changes.  Officers will work with those in the sector focused on a long term reduction in gambling harm and also with local and regional organisations that currently rely on funding from Gambling Trusts to maintain the opportunities and support they provide in the community.

Legal Considerations

16. The legal considerations related to investigating long-term accommodation options that fit with the values in Council’s Class 4 Gambling Venue and Board Venue Policy will be addressed as part of a separate piece of work (see paragraph 14 above).

Financial Considerations

17. Introducing a wellbeing approach to monitoring gambling venues may require further resourcing. Any quantifiable financial impact is unlikely to be known before the end of 2022 as considerable operational policy and financial impact assessment work is required before such an approach could be introduced.

 

18. The Environmental Health team already informally monitor the operation of gambling machines in venues that have them when undertaking their liquor licensing function and future work can build on this current approach.

Communications

19. A communication and engagement plan is being developed to support the implementation of the policy.

Appendices

No.

Title

Page

1

Hutt City Council Class 4 Venue and TAB Venue Policy 2021

36

    

 

 

Author: Wendy Moore

Head of Strategy and Planning

 

 

 

Reviewed By: Matt Boggs

Director, Strategy and Engagement

 

 

 

Approved By: Bradley Cato

Chief Legal Officer

 


Attachment 1

Class 4 Gaming Venue and Board Venue Policy 2021

 

hutt city council class 4 venue and TAB venue policy 2021

 

 

 

 

 

 

Division

Strategy and Planning

Date created

November 2021

Publication date

December 2021

Review period

Begin review September 2023

Owner

Wendy Moore, Divisional Manager, Strategy and Planning

Approved by

Council, December 2021

 

Version

Author

Date

Description

V 1.0

Wendy Moore 

23 November 2021

Peer review document

Final

Wendy Moore 

24 November 2021

Finalised document

Final

Wendy Moore

2 December 2021

Approved by Council

 


Contents

1.     Section A: Class 4 Venue Policy. 4

1.1       Policy  4

1.2       Interpretation. 4

1.3        Objectives of the Policy                                                                                                              4

1.4       Transition provision. 4

1.5        Objectives of the Policy                                                                                                              4

1.6        Class 4 venues may be established                                                                                          5

1.8       Relocation of existing Class 4 venues and machines. 5

1.9       Primary Activity of Class 4 Venues. 5

1.10    Merging of Class 4 Venues                                                                                                          5

2.     Section B: TAB Venue Policy. 5

2.1       Policy  5

2.2       Objectives of the Policy. 5

2.3      Where TAB Board venue may be established. 5

2.4      Incompatibility of TAB venue premises                                                                                        6

2.5        Applications                                                                                                                               6

2.5        Application fees                                                                                                                         6


 

1.    Section A: Class 4 Venue Policy 2021

1.1        Policy

Council is adopting this policy in accordance with section 101 of the Gambling Act 2003 as the Class 4 Venue Policy 2021.

This policy has two main elements – it takes a wellbeing approach to minimising the regressive and inequitable social and economic harms of Class 4 gambling, particularly in high deprivation communities, and it ensures that Council is taking a leadership role, demonstrating this through its operational work and management of its own estate.

The goal is to reduce the number of gaming machines and Class 4 venues in the Te Awa Kairangi ki Tai Lower Hutt and ensure that no additional Class 4 venues or gaming machines can be added. Class 4 venues will not be able to relocate, and no relocation consents will be issued. If a Class 4 venue is closed for over six months, it cannot be re-established as a Class 4 venue by another operator.  Over time, this approach means that the number of Class 4 venues and gaming machines may decrease.  Council will not allow any further Class 4 venues to be established in Council owned buildings/facilities. 

 

The policy does not affect existing Class 4 venues or existing gaming machines in Te Awa Kairangi ki Tai Lower Hutt.

 

The policy does not affect existing gambling venues or Class 4 gambling machines in Te Awa Kairangi ki Tai Lower Hutt.

1.2        Interpretation

Words and phrases defined in the Gambling Act 2003 or in the Racing Industry Act 2020 which are used in this Policy have the same meanings in this Policy as they are given in those Acts.

1.3        COMMENCEMENT OF THE POLICY

This Policy will come into effect from the date Council approves the Policy.

1.4        TRANSITION PROVISION

If there are applications under the previous policy, as yet undetermined, these applications will be considered under the previous Policy according to the law as it was when the application was made.

1.5        Objectives of the Policy

The objectives of this policy are to:

·      reduce gaming machine numbers and the number of Class 4 venues in Te Awa Kairangi ki Tai Lower Hutt;

·      adopt public health approaches to prevent and minimise harm from Class 4 gambling, to support community problem gambling service providers, and monitor Class 4 venues;

·      provide community access to information about the funds produced and distributed from Class 4 gambling within the city; and

·      facilitate community involvement in decisions about the provision of Class 4 Gambling in Te Awa Kairangi ki Tai Lower Hutt.

1.6        Where Class 4 venues may be established

Council will not grant consent for any new Class 4 venues to be established in the territorial authority district.

1.7        Numbers of gaming machines to be allowed

Council will not grant consent to any increase in the number of gaming machines in any Class 4 venue in the territorial authority district

1.8        RELOCATION OF EXISTING CLASS 4 VENUES AND MACHINES

Class 4 Venue licences cannot be relocated to another location in Te Awa Kairangi ki Tai Lower Hutt.

1.9        Primary activity of Class 4 venues

The primary activity of any Class 4 venue shall be:

a)         for sporting activities, or

b)         for the sale of alcohol or for alcohol and food, or

c)         the activities as a venue owned or leased by TAB NZ or a racing club, and used mainly for racing betting, or sports betting, or as a racecourse.

1.10      Merging venues

There will be no consents granted for Class 4 venue mergers.  

2.         Section B: TAB Venue Policy      

2.1        Policy

·      This policy is a policy adopted in accordance with Section 96, Racing Industry Act 2020 as a TAB venue policy.

·      The policy covers standalone TAB venues, which are owned or leased by TAB NZ. Council consent is not required under the legislation for a TAB facility in a bar, hotel, or club.

2.2        OBJECTIVES OF THE POLICY

The objectives of this policy are to:

·      reduce gaming machine numbers and TAB NZ venues in Te Awa Kairangi ki Tai Lower Hutt;

·      adopt public health approaches to prevent and minimise harm from gambling, to support community problem gambling service providers, and monitor TAB NZ venues;

·      provide community access to information about the funds produced and distributed from gambling within the city; and

·      facilitate community involvement in decisions about the provision of Gambling in Te Awa Kairangi ki Tai Lower Hutt.

2.3        Where TAB venue may be established

TAB Venues may be established within the central commercial and Petone commercial activity areas; suburban commercial and special commercial zones; and general recreation activity areas and special recreation activity areas subject to:

(i)      meeting application and fee requirements;

(ii)      not being a venue at which the primary activity is a family or children's activity;

(iii)     not being adjacent or adjoining to any residential zone, school, early childhood centre, kindergarten, place of worship or other community facility; and

(iv)     not being adjacent to another TAB NZ venue i.e. two TAB NZ venues may not be adjacent or adjoining

Where a TAB Venue is adjacent to or adjoining a Class 4 venue, the TAB venue is prohibited from operating gaming machines.

Note: “Central commercial and Petone commercial activity areas”, “suburban commercial and special commercial zones”, “general recreation activity areas and special recreation activity areas” and “residential zone or recreation zone” have the meanings and will be applied in accordance with the meanings of those terms in the Hutt City Council District Plan as operative at the time an application is considered.

2.4        Incompatibility of TAB venue premises

TAB venues must not be located in premises that are incompatible with other predominant uses in a commercial or retail district.

2.5        Applications

Applications for Council consent must be made on the approved form and must provide:

·      name and contact details for the application;

·      street address of premises proposed for the TAB venue licence;

·      the names of management staff; and

·      if not in the central commercial zone, evidence of the distance to the nearest residential zone, educational or religious establishment and other Class 4 gambling venues.

2.6     Application Fees

These will be set by the Council from time to time, and shall include consideration of:

(i)     the cost of processing the application, including any consultation and hearings involved;

(ii)     the cost of triennially reviewing the TAB venue policy;

(iii)    the cost of inspecting TAB venues on a regular basis to ensure compliance with consent or license conditions; and

(iv)    a contribution towards the cost of triennial assessments of the economic and social impact of gambling in the city.

 


                                                                                       1                                                  02 December 2021

Policy, Finance and Strategy Committee

13 November 2021

 

 

 

File: (21/1810)

 

 

 

 

Report no: PFSC2021/5/283

 

Council performance overview for the quarter ended 30 September 2021

 

Purpose of Report

1.    The report provides an overview of Council performance results for the period 1 July 2021 to 30 September 2021.

Recommendation

That the Committee notes and receives the report.

 

Background

2.    The performance results presented in this report are for Hutt City Council, the parent entity, and not the consolidated group. These are unaudited results for the first quarter ended 30 September 2021. 

3.    The Enterprise Portfolio Management Office (EPMO) is reviewing the performance reporting framework to develop integrated reporting across the key projects, performance measures (KPIs), financial budgets and forecasts. The project to review performance reporting includes the integration of internal reporting for the progress and performance against business plans, which were approved by the Corporate Leadership Team on 9 November 2021. The EPMO aims to provide a revised reporting format to the Policy, Finance and Strategy Committee on 22 February 2022 for half year performance reporting.

Discussion

Quarterly highlights and achievements

4.    Appendix 1 attached to the report provides details on the highlights and achievements over the quarter. 

People and capability

5.    Attached as Appendix 2 to the report are the quarterly results for health, safety and wellbeing.  

Performance measure results 

6.    Attached as Appendix 3 to the report are the first quarter key performance indicator (KPI) results.

Background - Annual Plan versus Revised Budget

7.    The Long Term Plan 2021-2031 was approved on 30 June 2021. The budgets included in the plan for 2021/22 were based on the latest financial information and estimates available at the time of the preparation of the plan.

8.    Through the review of the year-end financial results for 2020/21 there were a few budget matters identified which had flow-on impacts for 2021/22. For example, the estimated timing of project expenditure budgeted in 2021/22 changed for a range of reasons and the value of expenditure actually incurred in 2020/21 was different to that forecasted previously. From a project/budget manager perspective the budget in 2021/22 was requested to be updated to include carryovers to reflect the timing difference so as to improve clarity of the correct budget for the project/budget manager.

9.    A revised budget for 2021/22 has been created to reflect the budget updates required to improve the accuracy of budgets and the associated reporting of variances. Similar to 2020/21, the focus of performance monitoring is on financial results compared to the revised budget, as this is the most meaningful from a performance perspective.

10.  Table 1 that follows provides a summary view of the budget changes made to date, and includes decisions by the Policy, Finance and Strategy Committee in September 2021 (refer PFS2021/4/197, report entitled ‘Budget Update 2021/22’).

Table 1: Changes captured by the revised budget

$Million

Net surplus / (deficit) 2021/22

Capital investment  2021/22

Annual Plan 2021/22

0.5

Surplus

103.5

Operating and capital project budgets and subsidies carried forward from 2020/21

(1.9)

5.6

Revised Budget 2021/22

(1.4)

Deficit

109.1

Financial Performance Results

11.  This section provides an overview of the financial performance results for the three-month period ended 30 September 2021. Attached as Appendix 4 to the report is further detailed information.  

12.     The financial performance results provide an indication on how Council performed against the revised budget, and the associated financial risks.

13.     The year-to-date (YTD) net operating financial result is $3.4M (3.6%) favourable to budget. The full year (FY) forecast is $1.7M (7.1%) favourable to budget compared to the revised budget mainly due to higher forecast operating revenue of $5.3M partially offset by higher forecast expenditure.

Table 2: Operating Results

$Millions

YTD Actual

YTD Revised Budget

Variance

FY

Forecast

FY Revised Budget

Variance

FY

Annual Plan

Operating revenue

15.4

17.8

(2.4)

(13.5%)

66.6

61.3

5.3

8.6%

61.4

Operating expenditure

48.3

53.2

4.9

9.2%

218.9

214.6

(4.3)

(2%)

212.5

Net operating deficit before rates income

(32.9)

(35.4)

2.5

7.1%

(152.3)

(153.3)

1

0.7%

(151.1)

Rates income

130.4

129.5

0.9

0.7%

130.2

129.5

0.7

0.5%

129.5

Net operating surplus / (deficit)

97.5

94.1

3.4

3.6%

(22.1)

(23.8)

1.7

7.1%

(21.6)

Capital contributions

1.7

3.4

(1.7)

21.5

22.1

(0.6)

22.1

Net surplus/ (deficit) before adjustments

99.2

97.5

1.7

(0.6)

(1.7)

1.1

0.5

Other non-operating adjustments

4.2

-

4.2

4.5

0.3

4.2

-

Net surplus/ (deficit)

103.4

97.5

5.9

3.9

(1.4)

5.3

0.5

 

14.  Operating revenue: The operating revenue for the year is forecast to be $5.3M favourable (8.6%) to budget. This is largely due to higher landfill revenue of $1.8M, Three Waters Stimulus Funding $3.3M (comprising both an underspend from the prior year which has been carried over and a transfer of funding to be applied to operating expenditure in 2021/22 rather than capital expenditure), and higher revenue in Regulatory Services $0.5M, offset by a loss of revenue due to closures and restrictions as a result of COVID-19 impacting community spaces, mainly pools $0.5M.  

15.  Operating expenditure:  The operating expenditure for the year is forecast to be $4.3M (2%) unfavourable to the budget of $214.6M. This is largely due to work related to the Three Waters Stimulus Funding moving from a capital to an operating expenditure focus $3M, Solid Waste increased operating and ETS costs of $1.4M, increased maintenance costs in Transport $0.9M, and higher resourcing costs in Regulatory Services $0.5M (which are recoverable), offset by an underspend related to the Development Stimulus Package $1.5M (expected to be carried over to next financial year).

16.  Rates income: The rates income for the year of $130.2M is forecast to be $0.7M higher than budgeted mainly due to additional growth in the rating base, database maintenance updates and other minor variances.

17.  Capital contributions:  These are forecast to be $0.6M lower than budgeted largely due to refocusing the Three Waters Stimulus Funding to apply against operating activity such as planned and reactive maintenance rather than capital work $1M, offset by forecast increases in capital grants and vested assets $0.4M.

18.  Non-operating adjustments: Gains on the fair value of derivatives was $4.2M at 30 September 2021.  These are accounting (non-cash) adjustments related to fair value of the treasury derivatives portfolio and reflects the financial markets at the time.

Capital investment

19.  Table 3: Capital expenditure results

$Millions

YTD Actual

YTD Revised Budget

Variance

FY Forecast

FY Revised Budget

Variance

FY

Annual Plan

Replacements

3.6

6.2

2.6

44.1

53.6

9.5

52.1

Improvements

4.3

7.1

2.8

52.9

51.1

(1.8)

48.1

Growth

 

0.1

0.2

0.1

2.6

4.4

1.8

3.3

Total

8.0

13.5

5.5

99.6

109.1

9.5

103.5

 

20.  Capital expenditure delivery to-date is $8M or 8% of the full programme forecast for the year of $99.6M. The Three Waters are forecast to be $8.9M (22%) underspent at year end mainly due to delays in project planning, the effects of COVID-19 lockdown on project delivery and the capacity constraints of contractors, with all delayed projects expected to be carried over and completed within 2022/23 and 2023/24 by Wellington Water Ltd.

Project delivery performance

21.  Appendix 5 attached to the report provides a performance overview of key projects. This includes a status update, top risks and issues, financial summary, next major milestones and engagement activities planned. The projects included[1] are the District Plan, Eastern Bays Shared Path, Naenae Pool and Fitness Centre and Naenae Town Development, Petone Wharf refurbishment, RiverLink and Three Waters investment.

       There are a range of risks and issues being managed, with further detailed reporting and briefings provided to relevant committees and the Major Projects Board. Officers will be in attendance at the meeting to provide further updates and respond to queries.

22.  Table 4: project status summary

 

 

Treasury Compliance
 

23.  Council has been fully compliant with Financial Strategy borrowing limits.

Table 5: Financial Strategy borrowing limits

Measures

Policy

Actual  

30 Sep 2021

Compliance

Net external debt/total revenue

Maximum 150%

103.6%

Yes

Net interest on external debt/total revenue

Maximum 10%

1.1%

Yes

Liquidity ratio

Minimum 110%

115.4%

Yes

 

24.  Following a credit rating review by Standard and Poor’s Credit Rating Agency in August 2021, Council’s credit rating was affirmed as AA long term with a Stable Outlook and A-1+ short term. 

25.  Appendix 6 attached to the report provides further detailed treasury information. 

Options

26.  Not applicable.

Climate Change Impact and Considerations

27.  The matters addressed in this report have been considered in accordance with the process set out in Council’s Climate Change Considerations Guide.

28.  There are no further climate change impacts or considerations arising from this report.

Consultation

29.       There are no consultation requirements arising from this report.

Legal Considerations

30.       There are no legal considerations arising from this report.

Financial Considerations

31.  There are no financial considerations in addition to those already noted in this report.

Appendices

No.

Title

Page

1

Appendix 1: Quarterly Performance Report 1 July 2021 to 30 September 2021

47

2

Appendix 2: Health Safety Wellbeing for the three months to 30 September 2021

58

3

Appendix 3: Non-financial KPI report for the three months to 30 September 2021

60

4

Appendix 4: Financial performance results for the three months to 30 September 2021

68

5

Appendix 5: Project performance overview for the three months to 30 September 2021

75

6

Appendix 6: Treasury report for the three months to 30 September 2021

80

    

Author: Kelly Alkema

Chief People Officer

 

Author: Karl Eagle

Senior Management Accountant

 

Author: Caryn Ellis

Head of Chief Executive's Office

 

Author: Catherine Taylor

Senior Research and Evaluation Advisor

 

Author: Enid Davids

Risk and Assurance Manager

 

Author: Jenny Livschitz

Group Chief Financial Officer

 

Approved By: Jo Miller

Chief Executive  


 

 

 







Attachment 5

Appendix 5: Project performance overview for the three months to 30 September 2021

 



Attachment 6

Appendix 6: Treasury report for the three months to 30 September 2021

 



[1] The next project performance overview report to this Committee on 22 February 2022 will include Go Digital and an update around the close out report for the Kerbside Collection implementation project.